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Human Populations: Resources – Natural Capital

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Human Populations: Resources Natural Capital IB syllabus: 4.2.1-4.2.6 Empty Oceans Empty Nets AP syllabus Ch 12 Sustainable Development Term first used in 1987 in ... – PowerPoint PPT presentation

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Title: Human Populations: Resources – Natural Capital


1
Human PopulationsResources Natural Capital
  • IB syllabus 4.2.1-4.2.6
  • Empty Oceans Empty Nets
  • AP syllabus
  • Ch 12

2
Syllabus Statements
  • 4.2.1 Explain the concept of resources in terms
    of natural capital
  • 4.2.2 Define the terms renewable,
    replenishable, and non-renewable natural capital
  • 4.2.3 Distinguish between natural capital and
    natural income
  • 4.2.4 Explain the concept of sustainability in
    terms of natural capital and natural income
  • 4.2.5 Calculate and explain sustainable yields
    from given data
  • 4.2.6 Identify various values associated with
    natural capital and evaluate how these values
    influence this capitals appraisal and use

3
vocabulary
  • GNP (Gross national product)
  • Natural Capital
  • Non renewable natural capital
  • Renewable natural capital
  • Replinishable natural capital

4
  • It was thus becoming apparent that nature must,
    in the not far distant future, institute
    bankruptcy proceedings against industrial
    civilization, and perhaps against the standing
    crop of human flesh, just as nature had done many
    times to other detritus-consuming species
    following their exuberant expansion in response
    to the savings deposits their ecosystems had
    accumulated before they got the opportunity to
    begin the drawdown... Having become a species of
    superdetritovores, mankind was destined not
    merely for succession, but for crash.
    Catton,OVERSHOOT

5
Economic view
  • Traditional economy based on land, labor and
    capital
  • See environment as only one set of resources
    within a larger economic sphere
  • Environmental economists view environment as
    providing goods and services on which humans
    depend
  • Economy is constrained by limits of environmental
    resources
  • Environment provides raw materials and means of
    absorbing wastes

6
Economic Activity Classic View
7
  • Economic production is the process of converting
    the natural world into a manufactured world.
  • Example trees to paper to trash

8
Economic Activity Environmental View
9
Resources Natural Capital
  • Term coined by ecologically minded economists
  • If properly managed renewable replenishable
    resources are forms of wealth that can produce
    natural income
  • natural income indefinitely available
    valuable goods and services (based off of
    renewable and replenishable)
  • Marketable commodities or goods (timber, grain)
  • Ecological / Life-support services (flood
    erosion protection from forests)
  • Non-renewable resources forms of economic
    capital that cannot generate wealth without being
    liquidated

10
Natural Capital Natural Income
  • Natural Capital ? Standing stocks
  • Stock present accumulated amount of capital
  • Forests, Fish
  • Natural Income ? Flows
  • Sustainable rate of harvest of a stock
  • Harvests of timber, fishing

11
New England Groundfish Fisheries Example
12
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13
Too many boats, too few fish
  • November 1994 moves to shut down north atlantic
    groundfish fishery
  • Public outcry and economic effects
  • What caused the collapse
  • Decades of unsustainable harvest
  • Magnuson Act of 1976 supported unprecedented
    growth of the fishing fleet
  • 570 boats to 900
  • Bigger boats with more technology to catch fish
  • Removing large breeders and young before they can
    breed
  • Common syndrome for fisheries collapse
  • The flow (harvest) was bigger than the stock
    (population) could support

14
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15
Classes of Natural Capital I
  • RENEWABLE NATURAL CAPITAL
  • Living species, ecosystems
  • Self producing self maintaining
  • May use solar energy in photosynthesis
  • Can yield marketable goods (wood, meat)
  • Essential services when left in place (climate
    regulation)

16
Classes of Natural Capital II
  • REPLENISHABLE NATURAL CAPITAL
  • Non-living dependent on solar engine for
    renewal
  • Groundwater, Ozone layer

17
Classes of Natural Capital III
  • NON-RENEWABLE NATURAL CAPITAL
  • Like inventories
  • Any use requires liquidating part of the stock
  • Fossil fuels, Metals, Minerals
  • Some may regenerate in a geological time scale

18
The status of these resources changes over time
  • Cultural, economic, and technological factors
    influence a resources status over time and space
  • Uranium never valued, but with advent of
    nuclear technologies now extremely valuable
  • Bluefin Tuna prior to 1970 exclusively sport
    fish (.05 / lb) ? Japanese specialty market
    develops now a single large fish has sold for
    180,000
  • Solar Power 1960s space race makes it important
    ? 1970s oil embargo makes it critical ? 1990s
    competes with dropping oil prices ? now peak oil
    and increasing price make it desirable again

19
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20
Natural Capital has Value
  • Ecological, Economic, Aesthetic value
  • Value assigned based on diverse perspectives
  • Industrial Societies emphasize monetary
    economic valuations of nature
  • Economic value determined by market price of
    goods or services produced
  • Extrinsic Values

21
Ecosystem Capital Goods and Services
22
Natural Capital has Intrinsic Value
  • Ecological processes have no formal value
  • Still important though ? waste elimination, flood
    erosion control, nitrogen fixation,
    photosynthesis
  • Essential for existence but taken for granted

23
Natural Capital has Intrinsic Value
  • Organisms Ecosystems valued for aesthetic or
    intrinsic reasons may not produce commodities
    identifiable as goods or services
  • Unpriced undervalued from economic standpoint
  • Value from spiritual, ethical, or philosophical
    perspective
  • So diverse perspectives needed to evaluate
    natural capital

24
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25
Value vs. Sustainability
  • Hard to compare the values without prices
  • Attempts being made to acknowledge the diverse
    values so they are weighed more rigorously
    against traditional values (GNP, etc.)
  • Is this kind of valuation possible?
  • Sustainability debate hinges around the problem
    of how to weigh conflicting values of natural
    capital

26
Wealth of Nations
  • Determined by 3 components
  • Produced assets, Natural Capital, Human resources
  • Complement each other and contribute to well
    being
  • Dominant source of national wealth may vary
    between the 3 components

27
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28
How Societys Assets Complement Each Other
29
Composition of World Wealth
30
Wealth of Nations
  • Often represented by GNP (Gross national
    product)? sum of goods and services produced in a
    country
  • Shows economic health and wealth
  • GDP GNP net income from abroad
  • Often used to compare rich and poor countries
  • Depreciation in materials accounted for
  • Depreciation of natural capital never taken into
    account
  • This is a problem

31
  • Example
  • If a country cuts down 1 million acres of forest
  • We see positive on income side from timber sales
  • Only depreciation accounted is in chain saws and
    trucks
  • What about the loss of natural services
  • Situations like this lead to undervaluing natural
    resources

32
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33
Sustainability
  • Living within the means of nature, on the
    interest or sustainable income generated by
    natural capital
  • Societies supporting themselves by depleting
    essential forms of natural capital is
    unsustainable
  • If well being dependent on certain goods or
    services must harvest with care
  • Specifically long term harvest or degradation
    should not exceed rates of capital renewal

34
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35
Sustainable Development
  • Term first used in 1987 in Our Common Future
  • Development that meets current needs without
    compromising the ability of future generations to
    meet their own needs
  • Economist view ? stable annual return on
    investment regardless of environmental impact
  • Environmentalist view ? stable return without
    environmental degradation
  • http//www.earthsummit.info/

36
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37
http//www.binishells.com/index.html
38
The Earth Summit (1992) and its aftermath
  • Rio de Janeiro Conference on the Environment and
    Development
  • Env. Issues that cross international borders
  • Pollution, ocean conditions, atmospheric effects,
    forest destruction, loss of biodiversity
  • Agenda 21 ? focus on sustainable development for
    the 21st century
  • Reconcile future economic development with
    environmental protection
  • Followed by 2002 world summit on sustainable
    development in Johannesburg

39
Sustainable Yield
  • Sustainable Yield SY
  • SY Rate of increase in natural stock
  • Amount to exploit without depleting initial stock
    or potential for replenishment
  • SY for a crop annual gain in biomass or energy
  • These gains from growth or recruitment
    (production of offspring)

40
Calculating sustainable Yield
41
Sample Calculation
  • An average bluefin tuna produces 10 million eggs
    per year but only 10 of those survive to adult
    hood. Out of every 10, 3 will migrate to other
    areas of the ocean. If you start with 5000 tuna,
    what is the sustainable yield in your fishery?
  • So what would be a scenario where it would be a
    simple calculation?
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